BUDGETS AND CASH FLOWS

As we face tough economic times, it is important for companies to analyse their expected future cash flows. Cash is the life blood of any business. Detailed cash flows and budgets must be prepared using actual information on hand now, and then using best estimates of future events: revenues; overheads; receipts; major capital expenditure; and so on.

These reports should be constantly developed, reviewed and updated annually and thereafter every two to five years. This will eliminate any unexpected difficulties.

For those who operate in a volatile price market (especially with sensitivity to exchange rates), a budget will especially assist in highlighting the impact your model will have on both profit ability and cash flow.

Do you want to be able to effectively manage your business? Having great insight into what is planned for the rest of the year (and next year)?

At Lucro we have the experience and knowledge in creating model cash flow budgets and forecasts that are suited to your business’s needs and that will provide you with the correct tools to successfully manage your business.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)